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Digital piracy and the perception of price fairness. Evidence from a field experiment

Author

Listed:
  • Michal Krawczyk

    (University of Warsaw
    Group for Research in Applied Economics (GRAPE))

  • Joanna Tyrowicz

    (Group for Research in Applied Economics (GRAPE)
    University of Warsaw
    Institut für Arbeitsrecht und Arbeitsbeziehungen in der Europäischen Union (IAAEU)
    Institute of Labor Economics (IZA))

  • Anna Kukla-Gryz

    (University of Warsaw)

Abstract

We study a relationship between perceived price fairness and digital piracy. In a large-scale field experiment on customers of a leading ebook store we employ the Bayesian Truth Serum to elicit the information on acquiring books from unauthorized sources (often referred to as digital piracy). We provide empirical evidence in support of the conjecture that willingness to ‘pirate’ is associated with having experienced subjective overpricing. We propose and verify the relevance of two mechanisms behind this link: reactance theory and moral cleansing/licensing. The results indicate that pricing policy perceived as fair may reduce the scope for digital piracy.

Suggested Citation

  • Michal Krawczyk & Joanna Tyrowicz & Anna Kukla-Gryz, 2019. "Digital piracy and the perception of price fairness. Evidence from a field experiment," GRAPE Working Papers 39, GRAPE Group for Research in Applied Economics.
  • Handle: RePEc:fme:wpaper:39
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    unauthorized download; digital piracy; fair price; online sales; Bayesian Truth Serum;
    All these keywords.

    JEL classification:

    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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